(a) Included costs.--The cost of a project includes the
amount of all payments to contractors or for the acquisition of
a project or for lands, easements, rights and other
appurtenances deemed necessary for the project, fees of
architects, engineers, appraisers, consultants, financial
advisors and attorneys incurred in connection with the project
financing costs, costs of necessary printing and advertising,
costs of preliminary feasibility studies and tests, cost
estimates and interest on money borrowed to finance the project,
if capitalized, to the date of completion of construction and,
if deemed necessary, for one year thereafter, amounts to be
placed in reserve funds, if any, a reasonable initial working
capital for operating the project and a proper allowance for
contingencies and any amount which constitutes, under generally
accepted accounting principles, a cost of, and which has been
determined by an independent actuary or other expert to be
required for the purposes of, a reserve or a contribution toward
a combined reserve, pool or other arrangement for losses or
liabilities covered by a self-insurance arrangement established
by one or more local government units.
(b) Excluded costs.--Costs paid, from sources other than the
debt that is to be refunded, more than two years before an
issuance of new debt to finance the costs may not be included in
the costs of a project financed by the new debt. Reimbursements
under a guaranty or amounts to be used by a local government
unit to address budgetary deficits or other purposes not related
to the project do not constitute a cost of a project in
connection with the incurring of debt under this subpart.
(c) Funding of unfunded debt.--Costs that qualify for
funding of unfunded debt under section 8130 (relating to
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